• 3 minutes This Battery Uses Up CO2 to Create Energy
  • 5 minutes Shale Oil Fiasco
  • 9 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 12 minutes Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 8 hours Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 14 hours Governments that wasted massive windfalls
  • 12 hours Let’s take a Historical walk around the Rig
  • 15 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 1 day Trump has changed into a World Leader
  • 14 hours Here is Why People Lose Money Trading Natural Gas
  • 1 day Beijing Must Face Reality That Taiwan is Independent
  • 54 mins Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 12 hours US Shale: Technology
  • 16 hours 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 22 hours Trump capitulated
  • 2 days Yesterday POLEXIT started (Poles do not want to leave EU, but Poland made the decisive step towards becoming dictatorship, in breach of accession treaty)

Kuwait Sees Oil Market Balancing At End-2019

Storage tanks

One of the big OPEC producers, Kuwait, expects the oil market to rebalance toward the end of this year on the back of declining inventories and healthy oil demand, Kuwait’s Oil Minister Khaled al-Fadhel told Reuters on Monday.

OPEC is on the right track on its mission to draw down swelled inventories, but the work is not yet done, said the oil minister of Kuwait, which currently pumps around 2.7 million bpd and is the cartel’s fourth-largest producer behind Saudi Arabia, Iraq, and the United Arab Emirates (UAE).

“But we still have some more work to do. I believe the market is expected to be balanced during the 2nd half of 2019, more towards the end of the year,” al-Fadhel told Reuters in written replies to questions.

However, it’s too early to say if OPEC and its allies will decide to extend next month their production cut agreement through the whole of 2019 because there are many uncertainties both on the demand and supply side, the minister said.

The demand-side uncertainties include the U.S.-China trade dispute and its impact on the global economy and oil demand growth. On the supply side, U.S. production continues to increase, but fears of more supply outages from Iran and Venezuela, along with the instability in Libya, clouds the outlook for the oil market balance in the near term, al-Fadhel told Reuters.

“All options are on the table,” the minister said in response to a question if OPEC and its allies could decide at the meeting next month to increase production in the second half of 2019. 

Related: This Oilfield Service Player Is Looking To Make A Comeback

Reports have it that OPEC and its partners may decide to keep the production cuts until the end of the year as the cartel fears a steep price drop if cuts were to be reversed within the next couple of months, according to delegates at a panel meeting of the extended producers’ club who spoke to The Wall Street Journal.

Saudi Arabia’s Energy Minister Khalid al-Falih told Reuters last week that he doesn’t see an oil supply shortage on the market currently. OPEC will be responsive to the market needs, al-Falih said, but reiterated that data still suggests that inventories are rising, especially in the United States.

The EIA’s latest inventory report showed last week a crude oil inventory build of 4.7 million barrels in the week to May 17, sending oil prices lower.   

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage


Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play